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Vegas Real Estate: Sales Down 16% YoY, Inventory up 92% YoY

Goldhedge

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#2
Just watched The Big Short and read the book.

Amazing... nothing has changed since 2008.

You can find the movie on Pluto TV (online free TV) worth a look see...
 

nickndfl

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#4
The money being made now is in rehabbing entry level homes as long as they are purchased at the right price. Other parts of the market have slowed. New home prices are so high which has discouraged many of their flippers from the pre-2008 boom.
 

EO 11110

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#5
houston burb here....never experienced the bubbles of vegas, seattle, miami, cali, etc

what i'm seeing now is like nothing before. there is NO inventory. i'm guessing because oil biz is booming and mexican pop is exploding. maybe the meme applies here - real estate markets are local (loco?)
 

Area51

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#6
Notice how prices aren’t falling though - - they’re actually increasing.

It’s sales VOLUME that’s decreasing. Inventory has doubled but nobody is dropping their prices.

Until that happens, this is a non-issue spook story.
 

spinalcracker

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#7
It’s a sellers market in Colorado.

A caravan of commie fascists from Commiefornia invaded the state last election and the Rino’s are selling their homes to the cucks which is driving prices up.

Colorado is changing at a rapid pace and there are people from all over the country who are now choosing to call it home. Over the last few years Colorado has experienced faster population growth than ever before. The height of the boom happened between 2014 and 2015 where there were nearly 101,000 new people who moved to Colorado. From 2010 to 2015 Colorado was the second fastest growing state in the nation and only North Dakota could boast population growth at a more rapid pace.

https://www.grandparkco.com/why-is-everyone-moving-to-colorado/
 

kiffertom

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#9
prices are high as a result of all of the QE'S! where i live they are building, building, and building! a builder will build till he goes broke. like i said before in another post. EVERYDAY i see 3-10+ cars with temporary tags. many who are driving thses look like lower income individuals. my friend was at the dodge dealer. he was told they could wave the credit check! i shit you not. its 2008 all over! when this finally emplodes we are going to see the likes of something no human has ever seen. there is no way to prepare for this. it is beyond the scope of our understanding! itll make "29 look like a carnival ride!
 

the_shootist

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#10
prices are high as a result of all of the QE'S! where i live they are building, building, and building! a builder will build till he goes broke. like i said before in another post. EVERYDAY i see 3-10+ cars with temporary tags. many who are driving thses look like lower income individuals. my friend was at the dodge dealer. he was told they could wave the credit check! i shit you not. its 2008 all over! when this finally emplodes we are going to see the likes of something no human has ever seen. there is no way to prepare for this. it is beyond the scope of our understanding! itll make "29 look like a carnival ride!
Houses aren't getting more expensive, it's that the dollar is worth less in the housing market!
 

davycoppitt

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#11
Got a house hitting the market this Saturday. Hope it sells over list price in the first week. Most houses in the neighborhood are still getting multiple offers on the first day or two. Some houses 7-15 offers. Still insane here.

First day on the market. 9 showings. 1 offer 4k over asking price! Was told a few more offers will be coming in today. 99k over what we paid 3 years ago.

Open house today so hopefully that brings in some more interest.
 

TAEZZAR

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#14
Here in Orygun, the sales of rental units is slim. We have more people looking for a place to rent than we have places for rent. My son has been looking for a year & has missed a couple of opportunities due to under bidding the sales price. He/we found a nice 4 plex that he really wanted, both, the real estate broker & ol' dad suggested a bid just over the asking price. He got it. The difference here, v Vegas is that we don't have a bubble situation, it is simple growth at a slow pace .
 

Hystckndle

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First day on the market. 9 showings. 1 offer 4k over asking price! Was told a few more offers will be coming in today. 99k over what we paid 3 years ago.

Open house today so hopefully that brings in some more interest.
Crikey !!!
And
Good on you!
 

Scorpio

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#17
both, the real estate broker & ol' dad suggested a bid just over the asking price. He got it.
the problem I am seeing on this stuff is the cap rates are too low because of price.
prices driving cap rates down to 5,6 or 7%

I am not a buyer in current market conditions. A seller for sure.

If you find one with a decent cap, it is a pos.

So I am going to do a conversion of a prop and dump that into the market. Create a 14 unit out of nothing and feed that demand at max price.
 

EO 11110

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#18
the problem I am seeing on this stuff is the cap rates are too low because of price.
prices driving cap rates down to 5,6 or 7%

I am not a buyer in current market conditions. A seller for sure.

If you find one with a decent cap, it is a pos.

So I am going to do a conversion of a prop and dump that into the market. Create a 14 unit out of nothing and feed that demand at max price.
crazytown low cap rates you mention

cap rates in price appreciation markets should be sold at those prices

in static markets even more so (my local market fits this)

the thing will blow up again in the near term. the smart money is selling and waiting for their next opportunity
 

TAEZZAR

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#19
the problem I am seeing on this stuff is the cap rates are too low because of price.
prices driving cap rates down to 5,6 or 7%

I am not a buyer in current market conditions. A seller for sure.

If you find one with a decent cap, it is a pos.

So I am going to do a conversion of a prop and dump that into the market. Create a 14 unit out of nothing and feed that demand at max price.
His cap rate is 8.64% not too shabby in this market.
Another rule of thumb is $1 per sq. ft. for residential rentals. He is getting $900/mo. for 900 sq. ft. apt's.
These were built in 2005 & are quite clean.
 

Area51

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#20
His cap rate is 8.64% not too shabby in this market.
Another rule of thumb is $1 per sq. ft. for residential rentals. He is getting $900/mo. for 900 sq. ft. apt's.
These were built in 2005 & are quite clean.
That $1/sq’ “rule of thumb” is a pretty useless metric.

In a major city there’s not a chance in hell that an apartment will rent for $1/sq’. In a backwater little village, nobody’s paying $1/sq’.
 

Scorpio

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#21
all depends on the market for your area so to call it useless is silly
 

TAEZZAR

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#22
That $1/sq’ “rule of thumb” is a pretty useless metric.

In a major city there’s not a chance in hell that an apartment will rent for $1/sq’. In a backwater little village, nobody’s paying $1/sq’.[/QUOTE

Reread my post #14, it explains it.
 

davycoppitt

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#23
Sold!

18k over listing in two days. No inspection so its a done deal. If they back out now they lose their earnest money.

One thing I noticed was that these were all first time home buyers. The offer we took was the only offer that was not 3% down. This one was 8% down. That is what these young couples can come up with 3%.


Pretty unreal trade. Real estate friend said he has never seen a move like this and most likely will never again. Went from a 300k house to a 500k house and sold my first house for 16k more than my current one.
 

Silver

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#24
Sold!

18k over listing in two days. No inspection so its a done deal. If they back out now they lose their earnest money.

One thing I noticed was that these were all first time home buyers. The offer we took was the only offer that was not 3% down. This one was 8% down. That is what these young couples can come up with 3%.


Pretty unreal trade. Real estate friend said he has never seen a move like this and most likely will never again. Went from a 300k house to a 500k house and sold my first house for 16k more than my current one.
Awesome. You must have lipsticked the place real good - did you stage it? And, that's a tax free gain!
 

EO 11110

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#26
Yep buddy has staging furniture and did it for no cost. Also hired perfessional photographer to take pics and painted entire inside before.
how much is the dirt worth (price of empty lot)? also, what was lot size?

sticks and bricks don't move much (compared to the dirt). my RE deals are all about what i call 'magic dirt'
 

Cigarlover

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#27
Roethlisberger getting ready to move into his new 28,000 sq ft house. My brother ran into his builder over the weekend and he was showing him the photos of the inside. Said it's pretty nice.. I would expect nothing less from 28k sq ft though.